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Brazil’s Foreign Minister Antonio Patriota, criticized the trade between Argentina and Brazil, saying that it’s “less than satisfactory” due to Argentina’s trade barriers. His argument is based on the fact that the bilateral trade balance has become favourable to Argentina.

“We’re not badly off, but there are problematic areas that require greater attention,” said Patriota during a hearing with the Senate’s Foreign Relations Committee.

Patriota acknowledge that Brazil’s exports to Argentina have fallen “sharply” in the last couple of months, so much that during 2013’s first trimester the trade balance registered a surplus of US$82 million in favour of Brazil. While, in 2012, Brazil registered a US$1.5 billion surplus in its trade with Argentina, but Brazil’s sales with the region’s main partner dropped 22 percent, a trend that has increased so far this year.

The Minister said that the areas of “footwear and textiles have been particularly affected by restrictive measures,” imposed by the Argentine government, specially mentioning the non-automatic import licences.

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Brazil, South America’s biggest country, may become a global economic super-star in the future, but it will have to stop being an inward-looking giant.

There is new evidence that, despite President Dilma Rousseff’s announcement last week that Brazil will have a record grain crop this year, the country’s huge oil discoveries, and the unique propaganda opportunity Brazil will gain from hosting the 2014 World Cup and the 2016 Olympic Games, recent trade trends don’t bode well for the country.

The World Bank last week published a report entitled The Brazilian Competitiveness Cliffthat shows Brazil’s exports of high-valued industrial goods aren’t doing well. It says Brazil is facing “considerable competitiveness challenges.” Translation: the country is falling behind other emerging powers.

China’s release of weaker-than-expected July trade data highlighted concern over recovery prospects in both the Chinese domestic and global economies, damping markets globally and hitting oil and other commodity prices. The Asia giant is Brazil’s biggest trading partner.

China’s trade surplus fell to $25.2 billion in July from $31.7 billion in June, and was almost $10 billion below expectations for the month. According to Banco Santander (BSBR), the weak export performance reflects lowering demand for Chinese products worldwide, which should take further steam out of Chinese industrial production, while the weaker-than-expected import levels indicate Chinese internal demand is also weakening.

The Chinese trade figures followed data on lower Chinese bank lending rates in July, and Thursday’s weaker industrial production figures from the Asian giant. Economists said the various indicators have created negative sentiment that has dashed market expectations the Chinese economy, which dominates world trade, will recover in the third quarter.